DoD awards Lockheed Martin $1.24B for TRIDENT production and support through 2026
Contract Overview
Contract Amount: $1,245,473,110 ($1.2B)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-08-30
End Date: 2026-09-30
Contract Duration: 2,588 days
Daily Burn Rate: $481.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: FY20 TRIDENT PRODUCTION AND DEPLOYED SYSTEMS SUPPORT
Place of Performance
Location: TITUSVILLE, BREVARD County, FLORIDA, 32780
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $1.25 billion to LOCKHEED MARTIN CORPORATION for work described as: FY20 TRIDENT PRODUCTION AND DEPLOYED SYSTEMS SUPPORT Key points: 1. Significant contract value for a critical defense system. 2. Sole-source award to Lockheed Martin, limiting competition. 3. Long-term contract duration (2026) raises questions about ongoing price justification. 4. Focus on guided missile and space vehicle manufacturing.
Value Assessment
Rating: questionable
The contract value of $1.24B over several years is substantial. Without competitive bidding, it's difficult to assess if this price represents fair value compared to potential alternatives or market rates for similar complex manufacturing and support services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin. This lack of competition limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The absence of competition for a large, long-term contract like this likely results in a higher cost to taxpayers than a competitively awarded contract.
Public Impact
Supports national security through the production and maintenance of strategic missile systems. Ensures the readiness and operational capability of the TRIDENT program. Significant investment in advanced defense manufacturing capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of transparency in pricing justification
Positive Signals
- Critical defense system support
- Established contractor with relevant expertise
Sector Analysis
This contract falls within the Defense sector, specifically guided missile and space vehicle manufacturing. Spending in this area is typically high due to the specialized nature and national security importance of the products.
Small Business Impact
The data indicates this is a large prime contract awarded to Lockheed Martin Corporation. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for overseeing contract performance and ensuring compliance. However, the sole-source nature warrants close scrutiny.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition and potentially inflates costs.
- Long contract duration (over 7 years) increases risk of price escalation and reduced oversight effectiveness.
- Lack of transparency regarding the specific 'incentive' structure and its impact on cost control.
- Potential for contractor lock-in due to specialized nature of TRIDENT systems.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, fl, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.25 billion to LOCKHEED MARTIN CORPORATION. FY20 TRIDENT PRODUCTION AND DEPLOYED SYSTEMS SUPPORT
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $1.25 billion.
What is the period of performance?
Start: 2019-08-30. End: 2026-09-30.
What is the justification for the sole-source award, and has a thorough market research been conducted to ensure no other capable vendors exist?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. A comprehensive market research report should detail why other potential sources were excluded and confirm that competition was not feasible or would be detrimental to the government's interests.
How is the 'incentive' aspect of the Fixed Price Incentive (FPI) contract structured to ensure cost control and performance improvements?
An FPI contract establishes a target cost, target profit, and a ceiling price. If the final cost is below the target, both the contractor and the government share in the savings. Conversely, if costs exceed the target, the contractor bears a portion of the overrun up to the ceiling price. The incentive structure aims to motivate the contractor to control costs and meet performance objectives.
What mechanisms are in place to periodically review and adjust pricing, given the contract extends to 2026?
For long-term contracts, pricing adjustments are often governed by specific clauses related to economic price adjustments (EPAs) or require formal contract modifications based on updated cost data or scope changes. Regular reviews by the contracting officer and relevant oversight bodies are crucial to ensure continued fairness and reasonableness of the price throughout the contract's life.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003019Q0100
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 1102 JOHN GLENN BLVD, TITUSVILLE, FL, 32780
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,297,476,925
Exercised Options: $1,246,400,277
Current Obligation: $1,245,473,110
Subaward Activity
Number of Subawards: 1040
Total Subaward Amount: $1,741,113,270
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-08-30
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-02-19
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